2015, 2016 Michigan Earned Income Tax MI EITC

By | January 3, 2016

In September 2006, Governor Jennifer Granholm signed legislation to create a state EITC. In tax year 2008, over 711,000 filers claimed $145.2 million dollars through the Michigan EITC. Nearly 800,000 Michigan families with low to moderate annual incomes could see targeted tax relief if voters approve a road funding plan that would increase the state sales tax on all consumers.


What is the Michigan Earned Income Tax Credit?

For tax year 2013, a taxpayer may also claim a Michigan Earned Income Tax Credit equal to a percentage of the federal earned income tax credit for which the taxpayer is eligible. See the 2013 Michigan income tax booklet or contact the Michigan Department of Treasury for additional information


Calculating Michigan EITC

There may be a tax refund or tax credit in the future for some of Michigan’s lower-income working families! You may be eligible to receive benefits from the federal government’s 2013 Earned Income Tax Credit (EITC). The EITC may reduce the amount of taxes owed and may offset some living expenses by helping pay utility bills.

How much Michigan EITC?

Tax Year 2014 maximum credit:

$6,143 with three or more qualifying children ($369 Michigan’s EITC)

$5,460 with two qualifying children ($328 for Michigan’s EITC)

$3,305 with one qualifying child ($198 for Michigan’s EITC)

$496 with no qualifying children ($30 for Michigan’s EITC)

*Investment income must be $3,200 or less for the year. (Source: IRS website)


Amount of Michigan EITC

The amount of a credit depends on the number of children in a family and the family’s income. For example, the basic credit for a family ranges from $3,305 to $6,143 depending on the number of qualifying children.  The credit for anyone who worked but did not have a qualifying child could be as much as $496.

How do Michigan Workers claim the EITC?

This credit is available by completing Schedule EIC in the Federal 1040 or 1040A. Free tax preparation services for EITC eligible tax payers are available. Volunteer Income Assistance, or VITA, program provides IRS-trained volunteers to prepare and file tax returns for free. Credit unions and Michigan Works! Offices are offering a web-based, self-preparation service called I-CAN! EIC™. Written at a fifth-grade level, ICAN! EIC allows eligible tax payers to complete and e-file theirfederal and state tax returns on their own and for free.


Visiting Michigan VITA site for EITC

Even if you may not qualify for the EITC, you can still get your taxes prepared at a VITA or TCE site by an IRS trained preparer if your income is $53,000 or less. There are probably a free tax sites in your community. Check back in January for a link to locate a free tax preparation site near you and, because this list is updated as information becomes available, check back often. You can also call 2-1-1 for help locating the VITA/TCE site nearest you.